Meanwhile, the U.S. Department of Energy recently upped its global oil consumption outlook to a record 55 million barrels a day for 2011, with most of the demand coming from emerging markets like China and India. The Department of Energy adjusted upward its average oil prices projections to around $93 a barrel for 2011.

Craig Hodges, co-manager of the Hodges Funds, on the other hand, predicts oil will stay between $90 and $100 this year, followed by a higher spike in 2012.

If you would like to invest in oil, you may consider investing in oil ETFs that track a basket of futures contracts. PowerShares DB Oil (NYSEArca: DBO) and United States Oil (NYSEArca: USO) both track a basket of futures based on the price of oil. It should be noted that the funds don’t mimic the spot price of oil since investors have to pay a premium to invest in futures. And when the market is in contango, look out: it could negatively impact your ETFs.

About Us

Thanks for visiting ETFtrends.com. Our team of writers, editors, and financial experts work hard to bring you the latest news, trends and insights from the world of exchange traded funds. The following links will give you some further information about us and our team.